The case for demilitarising Lesotho

ABSTRACT

The Kingdom of Lesotho spends around five per cent of its annual budget – some 700 million Maloti ($US52.6 million) in 2017 – on the Lesotho Defence Force (LDF). Lesotho’s geographical position means that the LDF has no meaningful role regarding its primary function of defending the country from external aggression and it hardly engages in its secondary functions. In addition, the LDF has a long history of interference with democratic processes and engaging in human rights abuse. The financial resources currently allocated to the LDF could do far more for security, widely defined, if they were allocated to a number of other government expenditure categories.     

Excess capacity in weapons production: An empirical analysis∗ †

This paper analyzes a set of observations by the Congressional Budget Office (CBO) on individual weapons systems regarding whether large amounts of excess capacity exist and whether short run average cost (SRAC) appears to be severely decreasing. It is shown that the amount of excess capacity and steepness of SRAC are essentially independent of output rate. It is then argued that this suggests that production is occurring in inefficiently large plants—i.e.—off the long run cost curve.     

Defense spending and the macroeconomy

Given Kinsella's (1990, 1991) appeal for analysis to be pursued using sub‐annual level of data, we pursue such an endeavor in this paper. We examime the effect of defence spending on real output, the unemployment rate, price level, and interest rate covering a quarterly time frame 1960:1 to 1988:1 using an unrestricted vector autoregression framework. Our results parallel the findings of Kinsella in that there appears no causal relationship in either direction between defence spending and economic performance.     

A theory of war finance

This paper analyses the financial and war‐spending policies of a state that faces a conflict in which defeat would result in the loss of sovereign power and in which the material consequences, conditional on avoiding defeat, are stochastic. The analysis takes explicit account of the historical experiences of lenders, who face debt repudiation if the state to whom they have lent is defeated and who also face partial default if the material consequences of the war are unfavorable for the debtor state, even if it avoids defeat. In this analysis, the state uses war debt to smooth expected consumption intertemporally in response to temporary war spending, and the state also uses contingent debt servicing to insure realized consumption against the risk associated with the material consequences of the war. An important innovation in the analysis is to treat the equilibrium amount of war spending, the state's resulting probability of avoiding defeat, as well as the equilibrium amount of borrowing as a set of endogenous variables to be determined simultaneously.     

“Government contracting options: A model and application“∗

This paper models and simulates a government‐contractor principal‐agent weapon system repair model. Insights are derived as to how government repair contracts should be constructed so as to induce optimal contractor behavior. The paper's general conclusion is that the best contracting approach combines a lump‐sum payment that does not vary with the number of units repaired, expensive item cost‐sharing, and a contractor‐provided availability guarantee. Provided there is intercontractor competition, this type of contract performs well even if the government is poorly informed about weapon system break patterns or repair costs.     

ACQUIRING FOREIGN NUCLEAR ASSISTANCE IN THE MIDDLE EAST

The United Arab Emirates (UAE) has laid out an ambitious plan to become the first Arab country to possess a civilian nuclear energy program. Central to that effort has been the Emirati government's ability to obtain foreign nuclear assistance. This article traces the UAE's strategies for overcoming the obstacles that stood in the way of nuclear suppliers providing assistance. It examines the approach taken by the UAE to assuage the safety and security concerns of nuclear suppliers, how the UAE leveraged its alliances with France and the United States to obtain their cooperation, and its strategies for engaging domestic interest groups in supplier states. The generalizable elements of the UAE's strategies are discussed and used to provide insight into the prospects for other Middle Eastern states' bids to obtain similar assistance. The article concludes with a discussion of the potentially transformative aspects of the strategies employed by the UAE in shaping other countries' pursuit of nuclear energy in the region.     

INTEGRATING NUCLEAR WEAPONS STOCKPILE MANAGEMENT AND NUCLEAR ARMS CONTROL OBJECTIVES TO ENABLE SIGNIFICANT STOCKPILE REDUCTIONS

In his 2009 Prague speech and the 2010 Nuclear Posture Review, President Barack Obama committed the United States to take concrete steps toward nuclear disarmament while maintaining a safe, secure, and effective nuclear deterrent. There is an inherent tension between these two goals that is best addressed through improved integration of nuclear weapons objectives with nuclear arms control objectives. This article reviews historical examples of the interaction between the two sets of objectives, develops a framework for analyzing opportunities for future integration, and suggests specific ideas that could benefit the nuclear weapons enterprise as it undergoes transformation and that could make the future enterprise compatible with a variety of arms control futures.